In June, MEA Chairman, Eddie Teare MHK announced a Voluntary Selective Early Retirement Scheme in order to streamline the operations of the Authority and to capitalise upon the investment made in new technology. The response from the staff has been excellent and following consultation with the staff bodies, Board Approval and Treasury Concurrence to the Scheme, affected employees have been notified this week. He said, I am extremely impressed how staff have embraced the prospect of more change at the Authority whilst continuing to provide a first rate quality of service. It has not been easy for them operating under such uncertain conditions. We believe the Early Retirement Schemes success could only have been achieved with careful planning and good two-way open communication with our colleagues.

Mr Teare said, MEA headcount was over 300 in June 2005 when the new board was appointed and following completion of the scheme will show a reduction to 250, this is a reduction of 17%.

The reduction in staff numbers has been brought about following a detailed review of all our activities. The investment in new plant has played a major role in the increases in efficiency obtained and we have been able to move forward with our succession planning and re-structuring strategy earlier than originally envisaged.

Mr Teare was quick to point out, This certainly does not stop future job opportunities at the Authority. Natural retirement and normal staff turnover will mean that the Authority employs staff to cater for the ever-changing customer demands and to ensure that the business is in good shape to deliver supplies of electricity for the 21st Century. In reality, some 20 years ago the Authority was dealing with half todays demand for electricity, with 10,000 less customers on the system.

Overall the final result has shown respect for the wishes of those retiring early and given the Authority an excellent net saving for the long-term of over £1.5M per year, which we believe is a success for all those involved.

In conclusion, Mr Teare said, I would like to thank the many staff who are due to leave the Authority, most of whom have dedicated their working lives to the Electricity Industry on the Isle of Man, over many years, and to wish them well for the future.